Car lease on hire purchase : is car leasing contract in U K permissible?

Fatawa Question

Dear Dr. Kahf : Assalamu Alaykum Wa Rahmatullah Wa Barakatuh. My question is regarding Car Leasing. I understand that you have addressed this issue quite few times and I have read your answers as well. As you have mentioned in your answers, until you see the terms of contract you cannot finally comment whether it is Halal or Haram. I have attached the copy of terms and conditions of the contract .I would be grateful to you and god will bless you if could help me. Although it is not mentioned in the contract but I asked the car leasing company a specific question and answer was : 'If the leased vehicle will be stolen or completely destroyed, the leasing company continues to charge the lease rent till the settlement of the insurance claim. Is it permissible / Halal ? as you know almost all leasing company impose a penalty / extra charge for late payment. Is it permissible ? Jazakallahu Khair Dr. Faisal

Fatwa

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Publication Date

2009-04-29

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Islamic law
• Contracts
• ٌLeasing
• Credit
• Insurance
• Automobiles
• Business
• Bank loans
• Usury

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-732316

• APA
• MLA
• AMA